Are Smart Homes a Wise Investment?

Are smart homes a convenient addition to the traditional home, or just a fad to be forgotten in the years to come? Today, millions of homeowners use smart devices in their residences. These high-tech tools span the gamut from self-learning thermostats to smartphone-controlled lighting and alarm systems, and stand to improve a home’s functionality and convenience in several ways. Their popularity begs the question: are smart homes a wise investment?

Convenience

Smart homes offer increased convenience over traditional homes. If a homeowner forgets to turn off the lights, for instance, he or she can access their home’s lighting via a smartphone companion app. Other smart home devices work automatically, thereby reducing or eliminating the need for manual input. If integrated strategically, these “smart” apps can help homeowners save energy and live sustainably without significantly altering their lifestyles.

Lower Utility Bills

Because of their energy-saving technologies, smart homes offer lower monthly utility bills. Smart lights will turn off when no is home, and smart thermostats can adjust the climate for the perfect balance of comfort and efficiency. Research cited by CNBC found that smart homes use about 10 percent less energy than traditional homes. Over a year, that’s hundreds of dollars in energy savings for homeowners.

Security

Smart homes also provide security benefits for homeowners and their families. Each year, millions of homes are burglarized or vandalized in the United States. With a smart security system, homeowners will have peace of mind knowing their property is secure. Smart alarms can provide notifications of an intrusion, and smart surveillance cameras can stream footage to the homeowner’s smartphone.

Increased Property Value

Upgrading a home with smart devices can increase its property value by 3 percent to 5 percent, according to Consumer Reports. This is because prospective home buyers today acknowledge the benefits of smart devices.

Insurance Savings

Many homeowners are surprised to learn that insurance companies offer discounts for smart homes. American Family Insurance, for example, offers a 5 percent discount on insurance premiums for homeowners with smart devices. Considering that the average cost of homeowner’s insurance in the United States is $1,083 per year, that’s a savings of about $54.15 per year.

Prospective buyers can expect to pay more for a smart home than a traditional home. However, they should consider its long-term value. As revealed here, smart homes offer increased convenience, lower utility bills, security, increased property value and insurance savings. For these reasons, buying a smart home is usually a wise investment.